In June 2019, the parties agreed on the main terms and conditions of the potential JV. Following the investment decision, all corporate and regulatory approvals were obtained as required to close the deal. Following the deal, the parties will gain joint control over the JV.
Set to become the world’s largest basic polymer production facility, Amur GCC will have a capacity of 2.7 million tpy, including 2.3 million tpy of polyethylene and 400 000 tpy of polypropylene, and will be producing a wide range of grades. The construction of Amur GCC proceeds in synch with the gradual ramp-up of Gazprom’s Amur Gas Processing Plant to its full capacity, so that the latter could supply ethane and LPG to Amur GCC for processing into high value-added products. The completion of construction and commissioning is scheduled for 2024.
The Amur GCC project will help attract international investments in the Russian economy while also making a considerable contribution to the national programme of growing the nation’s non-commodity exports. Given the facility’s geography, its products will be targeting Asian markets, primarily China, which is the largest consumer of polymers globally. The Amur GCC project is expected to be included in an intergovernmental agreement between Russia and China.
Amur GCC will set the tone in global environmental and technology standards, in particular through its reliance on renewable energy sources.
Amur GCC’s budget is tentatively estimated at US$10 billion to US$11 billion and is subject to adjustments as the project progresses. In December, Amur GCC attracted US$1.5 billion in bridge financing from a syndicate of Russian banks. Gazprombank acted as the lead arranger and lender, with Otkritie and Sberbank as arrangers and lenders.
Dmitry Konov, Chairman of the Management Board at SIBUR Holding, said: “SIBUR and Sinopec have a long track record of jointly delivering on large-scale investment projects and implementing advanced production technologies. Creating a joint venture is a major milestone in our Amur GCC project. With Sinopec’s involvement, we will be able to maximise the project’s efficiency, in particular optimising and balancing the facility's future debt portfolio, while also enhancing its expertise in distribution across Asian markets.”
Zhang Yuzhuo, Chairman of Sinopec, said: “Amur GCC is a milestone in the cooperation between Sinopec and SIBUR, and will also become a model for Sino-Russian energy cooperation to extend to downstream chemical industry. The success of Amur GCC will inject new impetus into advancing the high-quality cooperation between the two countries in the fields of energy, chemical industry, investment, economy and trade and play a positive role in effectively promoting the sound interaction of domestic and international markets as well as the economic development, employment and social well-being of the Far East region.”
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/04012021/sibur-and-sinopec-create-jv-at-amur-gas-chemical-complex/
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